PPF Calculator: Government Savings Scheme Public Provident Fund (PPF) is a popular small savings scheme. It can be started easily at any nearest post office. Maturity in PPF is 15 years, that is, this scheme is being run by the government keeping in mind the investment savings in the long term.
Although it is helpful in preparing a better fund in the future for the employed, but you can also start it in the name of your child. After the child becomes an adult, he can operate the account under PPF. Through this scheme, the child can get a good fund when the child becomes an adult, so that the goals like higher education can be easily fulfilled.
Income tax benefit is also available in PPF account under section 80C. In this, you can take advantage of tax exemption on investment up to 1.5 lakh annually. The interest received in this scheme and the amount received on maturity are tax free. There is also the facility of loan and partial withdrawal against the account opened in the name of the child.
Scheme can be extended even after maturity
The maturity of PPF account is 15 years. But it can be extended for further 5-5 years with prior notice. You can invest a minimum of Rs 500 and a maximum of Rs 1.50 lakh annually in this account. However, if there is an account in the name of any of the parents other than the child, then the maximum amount will be 1.5 lakhs annually.
PPF: Return Calculator
Maximum Monthly Deposit: Rs 12,500
Maximum Annual Deposit: Rs 1,50,000
Interest Rates: 7.1 percent per annum Compounding
After 15 years Amount on Maturity: Rs 40,68,209
Total Investment: Rs
22,50,000 Interest Benefit: Rs 18,18,209
If the scheme is extended by 5 years
Maximum Monthly Deposit: Rs 12,500
Maximum Annual Deposit: Rs 1,50,000
Interest Rates: 7.1 per cent Compounding
p.a. Amount on Maturity after 20 years: Rs 66.58 lakh
Total Investment: 30 lakh
Interest Benefit: Rs 36.58 lakh
If the scheme is extended by 10 years
Maximum Monthly Deposit: Rs 12,500
Maximum Annual Deposit: Rs 1,50,000
Interest Rates: 7.1 per cent Compounding p.a.
Amount on Maturity after 25 years: Rs 1.03 crore
Total Investment: 37.50 lakh
Interest Benefit: Rs 65.58 lakh
